Cycle Trading

Stocks got a bit stretched above the 10 day MA on Tuesday and formed a swing high on Wednesday, then closed lower again on Thursday.

The decline into the day 26 low caused the 10 day MA to decline sharply.  Stocks may be consolidating to allow the 10 day MA to flatten out before it can turn higher.  However, stocks are still in a daily downtrend.  If stocks close below the 10 day MA that will indicate a continuation of the daily downtrend and deliver a cycle band sell signal.